The Local Pension Board of Barnet Council met on Tuesday 29 October 2024 to discuss the annual accounts and external audit update, pension fund risk registers, and administration performance. Key decisions included noting the update on outstanding audits and approving the most recent risk registers.

Annual Accounts and External Audit Update

The Board received an update on the 2020/21 audit, which remains outstanding, and the plans for the 2021/22 and 2022/23 audits. Grant Thornton, the appointed external auditors for the 2023/24 financial year, presented their indicative findings. The Board was advised that a disclaimed opinion is anticipated for the 2021/22 and 2022/23 accounts due to resource issues within the sector affecting the auditors' ability to complete audits within set timeframes. Grant Thornton noted that all work requested by BDO had been undertaken by officers.

Concerns were raised regarding the pre-payment of pensions contributions made in 2020, which may delay the audit of the 2023/24 accounts. The Board expressed disappointment with the delayed unaudited accounts and concerns about potential risks. It was agreed that Grant Thornton would be requested to provide their views on the processes put in place by Barnet Council for the completion of the 2023/24 Audit. The Board also noted that the Pension Fund Account had not been audited for three years, requiring Grant Thornton to undertake additional tests. The Chair of the Local Pension Board, Professor Geoffrey Alderman, will hold discussions with the Chair of the Pension Fund Committee regarding the unaudited accounts and provide feedback to the Board.

Pension Fund Risk Registers

The Board reviewed the Pension Fund Risk Registers, which provide an update on identified risks. The Board agreed that risk ADM18, Failure to produce compliant annual report and accounts within deadline, should be reviewed to ensure it is adequately rated and fully reflects the potential impacts of not submitting annual reports and accounts within set deadlines. The Board noted the most recent risk registers.

Administration Performance Report and Update on Other Administration and Legislative Matters

The Board received an update on the West Yorkshire Pension Fund's (WYPF) administration performance for May 2024, along with other administrative and legislative matters. WYPF's Key Performance Indicators (KPIs) remained at 90%. WYPF is working towards completing all backlogged tasks by March 2025, with updates to be provided at future Board meetings.

Discussions were held regarding the Pension Fund Engagement Strategy, noting that pension surgeries are well-attended, with an average of 30 scheme members met during these sessions. Training on The Pensions Regulator's (TPR) new General Code of Practice will be provided to the Board and Pension Fund Committee in 2025, facilitated by Aon. The Board noted WYPF's performance levels and updates on other administration and legislative issues.

Data Improvement Plan and Historical Leavers

The Board received an update on the data improvement plan and historical leaver exercise. Scheme members on the Members Portal receive their payslips and P60 forms via the database. Scheme members with incorrect addresses, or no address held by WYPF and not signed up to the Members Portal, will not receive payslips or their P60. A small percentage of scheme members have incorrect addresses. The Board noted the progress on correcting member data and the historical leaver exercise.

Decisions Made by the Pension Fund Committee

The Board received a report detailing recent decisions made by the Pension Fund Committee, summarising the rationale, processes followed, and links to policy documents and regulations. The Pension Fund Committee had expressed concerns over the audit process for the 2020/21, 2021/22, and 2022/23 accounts. The Chair of the Pension Fund Committee and Councillor Mark Shooter, former Chair, had addressed Full Council on the Local Pensions Board Annual Report for 2023 to 2024, with Councillors commending the Board's work. The Board noted the procedures applied by the Pension Fund Committee when reaching decisions and considered the associated issues.

Knowledge and Understanding

The Board received a report on knowledge and understanding, with officers advising that a strategic review of the training programme for both the Board and Pension Fund Committee would be undertaken. The review will examine training objectives and methods, with a draft training programme to be provided at the next meeting. Board members were reminded to update their training logs. The Board noted the report and the training options available.

Committee Work Programme

The Local Pension Board noted the work programme for 2024 to 2025.

Any Other Item(s) the Chairman Decides Are Urgent

The Chair, Professor Geoffrey Alderman, advised the Board that David Spreckley, Head of Pensions and Treasury, would be leaving Barnet Council. Mr Spreckley was thanked for his contributions, and the Board extended best wishes for his new role. Mr Spreckley responded, stating he had enjoyed his role at Barnet Council.

The meeting concluded at 7:00 PM.